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China's Leading Gaming Company NetEase Snaps Canadian Gaming Studio SkyBox Labs

Benzinga · 01/06/2023 11:24
  • NetEase, Inc (NASDAQ:NTES) scooped Canadian gaming studio SkyBox Labs, which co-developed significant games, including Halo Infinite.
  • The financial terms of the transaction remained undisclosed.
  • SkyBox labs will operate independently under NetEase, China's second-biggest gaming company, CNBC reports.
  • Also Read: Activision Explored Offering World of Warcraft in China After Recently Dumping NetEase Partnership
  • NetEase has ramped up its international expansion efforts in gaming over the last two years to beat China's domestic market slowdown amid regulatory crackdown.
  • NetEase acquired French game developer Quantic Dream in 2022, marking its first wholly-owned European studio. 
  • NetEase has also set up gaming studios in Japan and the U.S.
  • NetEase focuses on investing in or acquiring companies having experience with solid franchises and brands. 
  • SkyBox Labs has worked with gaming firms, including Microsoft Corp (NASDAQ:MSFT) Xbox Game Studios, and Electronic Arts Inc (NASDAQ:EA).
  • SkyBox Labs presently co-developed Halo Infinite and working on projects with Minecraft.
  • NetEase said it will support SkyBox Labs with "resources and execution capabilities so that SkyBox Labs can achieve faster scale while maintaining the quality of work the studio is known for."
  • While NetEase has typically focused on mobile and PC gaming, the company has set its sights on becoming a significant player in consoles, one of SkyBox Labs' fortes.
  • NetEase held $13.3 billion in cash and equivalents as of September 30.
  • Price Action: NTES shares traded higher by 0.78% at $82.70 on the last check Friday.